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choli [55]
3 years ago
14

On January 1, 2018, Bonita Corporation issued $5900000, 10-year, 9% bonds at 101. Interest is payable annually on January 1. The

journal entry to record this transaction on January 1, 2018 is
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer and Explanation:

The journal entry to record the issuance of the bond is shown below

On Jan 1, 2018

Cash (5,900,000 × 101%) $5,959,000

      Bonds Payable $5,900,000

      Premium on Bonds Payable $59,000

(Being the issuance of the bond is recorded)

Here the cash is debited as it increased the assets and credited the bond payable & premium on bond payable as it also increased the liabilities

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Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) T
inn [45]

Answer:

9.315%

Explanation:

The computation of WACC is shown below:-

But before that we need to do the following calculations

PV -$1,000

PMT 80

N 20

FV $1,000

Compute IY 8%

After tax cost of Debt = Before tax cost of debt × (1 - tax rate)

= 8% × (1 - 25%)

= 6%

According to the CAPM,

Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)

= 4.5% + (1.2 × 5.5%)

= 11.10%

Weight of Equity = 100% - 35%

= 65%

WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)

= (65% × 11.10) + (35% × 6)

= 9.315%

8 0
3 years ago
describe the communication process model, and explain how social media are changing the nature of business communication.
neonofarm [45]

Communication process model is the communication model made up of seven parts:

the communication source

encoding

the message

the channel

decoding

the receiver and

feedback.

Social media has forced different past favorites to recreate themselves into new formats while new social media companies have penetrated existing markets and businesses.

Social media has transformed internal as well as external business communication, so that it is now becoming more democratic, more open, and more participatory than ever before.

To know more about communication model here:

brainly.com/question/12999799

#SPJ4

8 0
1 year ago
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $37,000 and variable exp
andre [41]

Answer:

The BEP will decrease, which is good.

The reason is that C90B has a better profit margin than Y45E so if the sales shift toward C90B the Contribution mix margin ratio will be higher and it will be easy to pay fixed cost and make a gain

Explanation:

C90B

sales  37,000

variable expenses 9,250

contribution margin 27,750

CM 0.75

Y45E

sales 29,700

variable expenses 16,335

contribution 13,365

CM 0.45

7 0
3 years ago
_____ provide funds to small businesses with high growth potential in exchange for a share of ownership in the company.
posledela
Venture capitalists provide funds to small businesses, especially young ones, with a good amount of growth potential. They tend to get a decent share of ownership in the company in exchange of the investment that they made, and can serve as a very important support for the small business.
4 0
3 years ago
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value
Ivanshal [37]

Answer:

Date            Description                                    DR                   CR

June 15      Dividend expenses                      $120,000

                 Dividend Payable                                               120,000

July 10        Dividend Payable                         120,000

                   Cash                                                                  120,000

Dec 15        Dividend Expenses                     146, 400

                  Dividend payable                                           146,400

Explanation:

when dividend is declared and cash is yet to be paid, dividend expenses account will debited while dividend payable account will be credited.

when cash is paid for the dividend, dividend payable account will be credited while the cash account will be credited.

As at June 30, total number of shares outstanding = 95,000 + 25,000 = 120,000

As at December 31, the total number of outstanding shares =  95,000 + 25,000 + 2,000 = 122,000

6 0
3 years ago
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